The date on or after which a security begins trading without the dividend (cash or stock) included in the contract

price. What is an ex-date? The first day of the no-delivery period is the ex- date. If there is any corpora te benefits such as rights, bonus, dividend announced for which book closure/rec ord date is fixed, the buyer of the shares on or after the ex -date will not be eligible for the benefits. Top Why is "new share dividend" deducted from the sale price of shares? In case a company issues new shares in any financial year, then these shares are eligible only for pro rata dividend in respect of the financial year in which t hese are issued. The old and the new shares thus carry disproportionate rights a s to dividend, although their market price remains the same. To compensate the b uyer to whom these new shares are delivered for loss of pro rata dividend, the s eller of new shares has to pay to the buyer, the dividend declared in respect of old shares. This old-new compensatory value is called as new share dividend. Th e Exchange publishes a list of the scrips that are eligible to receive the pro r ata dividend per settlement. What is a bonus issue? While investing in shares the motive is not only capital gains but also proporti onate share of surplus generated from the operations once all other stakeholders have been paid. But the distribution of this surplus to shareholders seldom hap pens. Instead, this is transferred to the reserves and surplus account. If the r eserves and surplus amount becomes too large, the company may transfer some amou nt from the reserves account to the share capital account by a mere book entry. This is done by increasing the number of shares outstanding and every shareholde r is given bonus shares in a ratio called the bonus ratio and such an issue is c alled bonus issue. If the bonus ratio is 1:2, it means that for every two shares held, the shareholder is entitled to one extra share. Thus a shareholder holdin g two shares, post bonus holds three shares of the company. Top What is a split? Split is book entry wherein the face value of the share is altered to create mor e number of shares outstanding without calling for fresh capital or without alte ring the share capital account. For example if a company announces a two-way spl it, it means that a share of the face value of Rs.10 is split into two shares of face value Rs.five each and a person holding one share now holds two shares. What is buy-back? It is a process by which a company can buy-back its shares from shareholders. A company may buy-back its shares in various ways : from existing shareholders on a proportionate basis through a tender offer from open market through book-building process from the Stock Exchange from odd lot holders A company cannot buy-back its shares through negotiated deals, whether on or off the Stock Exchange or through spot transactions or through any private arrangem ent. Top Clearing and Settlement What is a settlement cycle?

Settlement cycle is the accounting period for the securities traded on the Excha nge. On the NSE the cycle begins on Wednesday and ends on the following Tuesday, while on the BSE the cycle commences on Monday and ends on Friday. At the end o f this period, the obligations of each broker is calculated and the brokers sett le their respective obligations as per the rules, bye-laws and regulations of th e Clearing Corporation. Top NSE settlement cycle at a glance Date Particulars Activity 1-7 WednesdayTuesday Trading Period 8 Wednesday Custodians report trades which they will not settle.Such trades will be added to the member obligation. 13 Monday Pay-in of securities, delivery of documents by the delivery members at the Clearing House. 14 Tuesday Pay-in funds by members through the Clearing Bank.Shortage identification at Clearing House. 15 Wednesday Pay-out day for Securities and Funds. Auction for shortages. 17 Friday Auction pay-in day for Securities and Funds. Bad delivery reporting by the receiving member to the Clearing House and intimation to the delivering member. 18 Saturday Auction pay-out. Pick-up of bad deliveries for rectification. 20 Monday Bad delivery rectification/replacement by the delivering member. 22 Wednesday Auction for bad delivery not rectified/replaced. 23 Thursday Bad delivery auction pay-in. 24 Friday Bad delivery auction pay-out. BSE settlement cycle at a glance Day

Activity Monday to Trading on BOLT and daily downloading of statement showing details